The desirability of zero population growth (ZPG) in the United States has been tempered, in the minds of many who would be otherwise favorable predisposed,by the spector of mass unemployment. Much of the unease can be traced back to the discussions of the 1930's when economists such as Alvin Hansen argued that in the absence of high rates of population growth, new frontiers or innovations that tended to increase the amount of capital needed to add to output, savings at full employment would tend to exceed investment at full employment. From this it was deduced that a decline in the rate of growth of population - let alone ZPG - might well result in large scale, prolonged unemployment. Hansen as well as others had been sceptical of the ability of fiscal and monetary policy to effectively counteract the potentially recessionary impact of declining population growth. With the accelerating interest and concern today with the possible adverse effects of population growth on the ecology, it is certainly important that we understand more fully the impact of ZPG on aggregate demand and employment as well as the adequacy of our fiscal and monetary instruments of offset any potential recessionary pressures resulting from ZPG. The primary purpose of this study are: (1) to determine more fully the way in the which demographic growth may affect aggregate demand including an evaluation of recent studies concerned with the effects of demographic growth on the main categories of demand; and (2) to determine whether or not the available fiscal and monetary instruments for influencing demand are adequate for handling any possible recessionary consequences of ZPG. If they are found inadequate, other instruments of policy must be investigated in terms of their economic impact and their political feasibility; i.e., in terms of the likelihood they would be acceptable to our government leaders. From all this we hope to develop a feasible and effective policy that will eliminate any recessionary consequences of ZPG.